Bitcoin (BTC-USD) slipped below $110,000 on Thursday amid a broader sell-off in crypto and stocks. The largest cryptocurrency declined more than 3% while ethereum (ETH-USD), solana (SOL-USD), and other coins saw even bigger drawdown in what has been a rocky week for the crypto market. Ether fell roughly 5% to below $3,900 before paring losses, marking its lowest level since August, as ethereum exchange-traded funds (ETFs) saw net outflows over the past 24 hours. "The persistent downward pressure is root ...

Market Trends - Market makers are driving long liquidations, indicating potential market instability [1] - The industry advises caution due to the ongoing market dynamics [1]

Crypto Market Crash Causes - Crypto market crashes are often triggered by a combination of bearish macro and crypto catalysts [2] - Leverage in crypto trading amplifies both potential returns and losses, leading to liquidations that drive short-term price action [3][4][5] - Macro catalysts act as fuel, while crypto catalysts act as the spark that ignites market downturns [13] Macro Catalysts - Bearish macro catalysts include higher-than-expected inflation, lower-than-expected unemployment, and the Federal Reserve maintaining high interest rates [19] - Geopolitical risks, especially potential conflicts involving China and Taiwan, pose significant threats to the crypto market due to uncertainty [25][27] - Fiscal policy, particularly government spending and rising deficits, is a primary driver of liquidity growth, overshadowing the impact of monetary policy [22][23][24] Crypto Catalysts - Temporary bearish crypto catalysts often mark cycle bottoms, while permanent bearish catalysts, such as insider token selling, can hinder project performance [34][37] - The shutdown of institutional crypto rails like Signature's Signet and Silvergate Sen networks in early 2023 contributed to the underperformance of altcoins [44][45] - Token unlocks don't always lead to price drops; panic selling by retail investors and lack of demand can be more significant factors [38][39][40][41][43]